The head of Ripple notes the importance of remittances in the global economy. He wrote about this on his Twitter as a comment to a tweet regarding WSJ article on the importance of remittance flows to the developing world.
It’s unacceptable that those who have the least, often pay the most. Remittances have long been underserved by traditional finance, even as they make up a huge part of the global economy. You want to help the unbanked? Start there. https://t.co/LCPCEucLDJ
— Brad Garlinghouse (@bgarlinghouse) July 8, 2020
Garlinghouse states on Twitter:
“It’s unacceptable that those who have the least, often pay the most. Remittances have long been underserved by traditional finance, even as they make up a huge part of the global economy.”
The head of Ripple previously noted that crypto assets solve real banking problems and money transfer issues. He stated that in the future, the ability to make payments, especially cross-border ones, will continue to improve.
During the discussion, participants of the crypto community noted that their income in XRP has long ceased to grow. Many ask to pump Ripple cryptocurrency, as most other coins demonstrated growth this year.
But as one of the users noted; unlike other blockchain projects, Ripple actively cooperates with regulators in the direction of spreading the presence of its own network. Therefore, he recommended the owners of XRP be patient.
While other cryptos are playing the speculation game, with few solving any real problems, Ripple is actively working with regulators and international financial institutions to lay the foundation for what is to come. Be patient.
— Emperor Zerp (@Chaunce72042505) July 8, 2020
High Fees for Cross-Border Transfers are an Ecosystem Issue
High fees for cross-border transfers are an extremely serious issue.
As for the fees for payments, it is worth noting that the payment solution from Ripple, based on XRP, allows users to save up to 60-40% of the money transfers fees.
Using On-Demand Liquidity (ODL) allows users to get rid of working capital, which positively affects the fees. ODL uses XRP tokens to “connect two currencies to each other”, providing almost instant payments.
Note that Ripple services are used not only by local companies but also by very large enterprises. In August last year, one of the largest US banks, PNC, activated the RippleNet network to make cross-border payments.
To process cross-border payments, MoneyGram money transfer system uses Ripple products – 10% of all transactions between the USA and Mexico are carried out using ODL.
Recall that in June 2019 Ripple invested $ 30 million in MoneyGram transfer company. Under the terms of the deal, Ripple reserved the right to purchase an additional stake of $ 20 million over five years. Last month, the company took advantage of this opportunity by increasing its capital in the money transfer system to 9.95% of ordinary shares.
Ripple CEO Brad Garlinghouse said that 350 clients had already connected to the Ripple platform. He also stressed that in October 2019, Ripple processed more transactions than in the whole of 2018. The project team noted that ODL also played a significant role in this, which allows the company’s customers to increase profit levels and meet the needs of their users.